The Lightning Network has been successfully integrated as a scaling solution atop the Bitcoin blockchain, according to Binance. Binance is the largest cryptocurrency exchange in the world by trading volume. Users of Binance can now use the Layer02 solution for Bitcoin withdrawals and deposits thanks to the integration.
Users can now choose “BTC-Lightning” as their network when making deposits or withdrawals of Bitcoin from the exchange thanks to the new feature. Last month, Binance confirmed integrating Lightning nodes into its infrastructure to address Bitcoin’s network congestion. The Bitcoin network held over 420,000 unconfirmed transactions, causing Binance to briefly suspend BTC withdrawals.
The BRC-20 token standard on the Bitcoin Ordinals protocol caused congestion, increasing average transaction costs for Bitcoin. The Lightning Network integration should resolve these problems, offering faster and more affordable Bitcoin transactions to customers.
Not just Binance but other significant cryptocurrency exchanges have included functionality for the Lightning Network. Others, including Kraken, OKX, Bitfinex, and the mobile payment network Cash App, have already applied the scaling approach to enhance Bitcoin transaction efficiency.
Separately, Binance has unveiled a brand-new function that enables users to get several deposit addresses for the same network. Initially, this feature is accessible only for tokens created on the Ethereum network (ERC-20) and networks compatible with Ethereum, like Arbitrum One or BNB Chain. In the future, the exchange intends to support more networks.
#Binance has completed the integration of Bitcoin ( #BTC ) on the Lightning Network and deposits and withdrawals are now open.
More details here 👇https://t.co/aIofPdtAGY
— Binance (@binance) July 17, 2023
For each network, users may create up to 20 deposit addresses. Binance will periodically examine this quota and change the number of deposit addresses as necessary.
Binance has taken a big step toward increasing the efficiency and scalability of Bitcoin transactions on the platform by integrating the Lightning Network. As the Lightning Network gains more adoption, cryptocurrencies’ usability and accessibility will likely improve. Major exchanges have already implemented similar solutions.
